Neustar (NSR)

 

Our executive compensation programs are designed to create value for our stockholders by supporting the achievement of our business and financial objectives. To this end, we have formulated our programs for executives (including our named executive officers, as defined in the Summary Compensation Table below) to reward superior financial and operating performance, to align executives’ interests with those of our stockholders, and to encourage talented individuals to join and remain with the Company and contribute to our growth and success.

 

Our executive compensation programs are intended to be both competitive and fair. In determining the types and amount of compensation for each executive, we focus on the executive’s performance and potential, level of responsibility, and current compensation and stock ownership levels, as well as our retention needs and competitive practice. The material elements of our executive compensation programs consist of base salary, annual cash incentive compensation, discretionary bonus and equity awards.

 

 

We provide essential clearinghouse services to the communications industry and enterprise customers. Our customers use the databases we contractually maintain in our clearinghouse to obtain data required to successfully route telephone calls in North America, to exchange information with other communications service providers and to manage technological changes in their own networks. We operate the authoritative directories that manage virtually all telephone area codes and numbers, and we enable the dynamic routing of calls among thousands of competing communications service providers, or CSPs, in the United States and Canada. All CSPs that offer telecommunications services to the public at large, or telecommunications service providers, such as Verizon Communications Inc., Sprint Nextel Corporation, and AT&T Corp., must access our clearinghouse to properly route virtually all of their customers’ calls. We provide clearinghouse services to emerging CSPs, including Internet service providers, mobile network operators, cable television operators, and voice over Internet protocol, or VoIP, service providers. In addition, we provide domain name services, including internal and external managed DNS solutions that play a key role in directing and managing traffic on the Internet, and we manage the authoritative directories for the .us and .biz Internet domains. We operate the authoritative directory for U.S. Common Short Codes, part of the short messaging service relied upon by the U.S. wireless industry, and provide solutions used by mobile network operators worldwide to enable mobile instant messaging for their end users.

 

We were founded to meet the technical and operational challenges of the communications industry when the U.S. government mandated local number portability in 1996. While we remain the provider of the authoritative solution that the communications industry relies upon to meet this mandate, we have developed a broad range of innovative services to meet an expanded range of customer needs. We provide critical technology services that solve the addressing, interoperability and infrastructure needs of the communications industry and enterprise customers. These services are used to manage a range of technical and operating requirements, including:

 

 

 

We provide essential clearinghouse services to the communications industry and enterprise customers. Our customers use the databases we contractually maintain in our clearinghouse to obtain data required to successfully route telephone calls in North America, to exchange information with other communications service providers and to manage technological changes in their own networks. We operate the authoritative directories that manage virtually all telephone area codes and numbers, and we enable the dynamic routing of calls among thousands of competing communications service providers, or CSPs, in the United States and Canada. All CSPs that offer telecommunications services to the public at large, or telecommunications service providers, such as Verizon Communications Inc., Sprint Nextel Corporation, and AT&T Corp., must access our clearinghouse to properly route virtually all of their customers’ calls. We provide clearinghouse services to emerging CSPs, including Internet service providers, mobile network operators, cable television operators, and voice over Internet protocol, or VoIP, service providers. In addition, we provide domain name services, including internal and external managed DNS solutions that play a key role in directing and managing traffic on the Internet, and we manage the authoritative directories for the .us and .biz Internet domains. We operate the authoritative directory for U.S. Common Short Codes, part of the short messaging service relied upon by the U.S. wireless industry, and provide solutions used by mobile network operators worldwide to enable mobile instant messaging for their end users.

 

We were founded to meet the technical and operational challenges of the communications industry when the U.S. government mandated local number portability in 1996. While we remain the provider of the authoritative solution that the communications industry relies upon to meet this mandate, we have developed a broad range of innovative services to meet an expanded range of customer needs. We provide critical technology services that solve the addressing, interoperability and infrastructure needs of the communications industry and enterprise customers. These services are used to manage a range of technical and operating requirements, including:

 

 

 

We provide essential clearinghouse services to the
communications industry and enterprise customers. Our customers
use the databases we contractually maintain in our clearinghouse
to obtain data required to successfully route telephone calls in
North America, to exchange information with other communications
service providers and to manage technological changes in their
own networks. We operate the authoritative directories that
manage virtually all telephone area codes and numbers, and we
enable the dynamic routing of calls among thousands of competing
communications service providers, or CSPs, in the United States
and Canada. All CSPs that offer telecommunications services to
the public at large, or telecommunications service providers,
such as Verizon Communications Inc., Sprint Nextel Corporation,
and AT&T Corp., must access our clearinghouse to properly
route virtually all of their customers’ calls. We provide
clearinghouse services to emerging CSPs, including Internet
service providers, mobile network operators, cable television
operators, and voice over Internet protocol, or VoIP, service
providers. In addition, we provide domain name services,
including internal and external managed DNS solutions that play
a key role in directing and managing traffic on the Internet,
and we manage the authoritative directories for the .us and .biz
Internet domains. We operate the authoritative directory for
U.S. Common Short Codes, part of the short messaging
service relied upon by the U.S. wireless industry, and
provide solutions used by mobile network operators worldwide to
enable mobile instant messaging for their end users.

 

We were founded to meet the technical and operational challenges
of the communications industry when the U.S. government
mandated local number portability in 1996. While we remain the
provider of the authoritative solution that the communications
industry relies upon to meet this mandate, we have developed a
broad range of innovative services to meet an expanded range of
customer needs. We provide critical technology services that
solve the addressing, interoperability and infrastructure needs
of the communications industry and enterprise customers. These
services are used to manage a range of technical and operating
requirements, including:

 

 

 

We provide essential clearinghouse services to the
communications industry and enterprise customers. Our customers
use the databases we contractually maintain in our clearinghouse
to obtain data required to successfully route telephone calls in
North America, to exchange information with other communications
service providers and to manage technological changes in their
own networks. We operate the authoritative directories that
manage virtually all telephone area codes and numbers, and we
enable the dynamic routing of calls among thousands of competing
communications service providers, or CSPs, in the United States
and Canada. All CSPs that offer telecommunications services to
the public at large, or telecommunications service providers,
such as Verizon Communications Inc., Sprint Nextel Corporation,
and AT&T Corp., must access our clearinghouse to properly
route virtually all of their customers’ calls. We provide
clearinghouse services to emerging CSPs, including Internet
service providers, mobile network operators, cable television
operators, and voice over Internet protocol, or VoIP, service
providers. In addition, we provide domain name services,
including internal and external managed DNS solutions that play
a key role in directing and managing traffic on the Internet,
and we manage the authoritative directories for the .us and .biz
Internet domains. We operate the authoritative directory for
U.S. Common Short Codes, part of the short messaging
service relied upon by the U.S. wireless industry, and
provide solutions used by mobile network operators worldwide to
enable mobile instant messaging for their end users.

 

We were founded to meet the technical and operational challenges
of the communications industry when the U.S. government
mandated local number portability in 1996. While we remain the
provider of the authoritative solution that the communications
industry relies upon to meet this mandate, we have developed a
broad range of innovative services to meet an expanded range of
customer needs. We provide critical technology services that
solve the addressing, interoperability and infrastructure needs
of the communications industry and enterprise customers. These
services are used to manage a range of technical and operating
requirements, including:

 

 

 

We provide essential clearinghouse services to the
communications industry and enterprise customers. Our customers
use the databases we contractually maintain in our clearinghouse
to obtain data required to successfully route telephone calls in
North America, to exchange information with other communications
service providers and to manage technological changes in their
own networks. We operate the authoritative directories that
manage virtually all telephone area codes and numbers, and we
enable the dynamic routing of calls among thousands of competing
communications service providers, or CSPs, in the United States
and Canada. All CSPs that offer telecommunications services to
the public at large, or telecommunications service providers,
such as Verizon Communications Inc., Sprint Nextel Corporation,
and AT&T Corp., must access our clearinghouse to properly
route virtually all of their customers’ calls. We provide
clearinghouse services to emerging CSPs, including Internet
service providers, mobile network operators, cable television
operators, and voice over Internet protocol, or VoIP, service
providers. In addition, we provide domain name services,
including internal and external managed DNS solutions that play
a key role in directing and managing traffic on the Internet,
and we manage the authoritative directories for the .us and .biz
Internet domains. We operate the authoritative directory for
U.S. Common Short Codes, part of the short messaging
service relied upon by the U.S. wireless industry, and
provide solutions used by mobile network operators worldwide to
enable mobile instant messaging for their end users.

 

We were founded to meet the technical and operational challenges
of the communications industry when the U.S. government
mandated local number portability in 1996. While we remain the
provider of the authoritative solution that the communications
industry relies upon to meet this mandate, we have developed a
broad range of innovative services to meet an expanded range of
customer needs. We provide critical technology services that
solve the addressing, interoperability and infrastructure needs
of the communications industry and enterprise customers. These
services are used to manage a range of technical and operating
requirements, including:

 

 

 

We provide essential clearinghouse services to the
communications industry and enterprise customers. Our customers
use the databases we contractually maintain in our clearinghouse
to obtain data required to successfully route telephone calls in
North America, to exchange information with other communications
service providers and to manage technological changes in their
own networks. We operate the authoritative directories that
manage virtually all telephone area codes and numbers, and we
enable the dynamic routing of calls among thousands of competing
communications service providers, or CSPs, in the United States
and Canada. All CSPs that offer telecommunications services to
the public at large, or telecommunications service providers,
such as Verizon Communications Inc., Sprint Nextel Corporation,
and AT&T Corp., must access our clearinghouse to properly
route virtually all of their customers’ calls. We provide
clearinghouse services to emerging CSPs, including Internet
service providers, mobile network operators, cable television
operators, and voice over Internet protocol, or VoIP, service
providers. In addition, we provide domain name services,
including internal and external managed DNS solutions that play
a key role in directing and managing traffic on the Internet,
and we manage the authoritative directories for the .us and .biz
Internet domains. We operate the authoritative directory for
U.S. Common Short Codes, part of the short messaging
service relied upon by the U.S. wireless industry, and
provide solutions used by mobile network operators worldwide to
enable mobile instant messaging for their end users.

 

We were founded to meet the technical and operational challenges
of the communications industry when the U.S. government
mandated local number portability in 1996. While we remain the
provider of the authoritative solution that the communications
industry relies upon to meet this mandate, we have developed a
broad range of innovative services to meet an expanded range of
customer needs. We provide critical technology services that
solve the addressing, interoperability and infrastructure needs
of the communications industry and enterprise customers. These
services are used to manage a range of technical and operating
requirements, including:

 

 

 

We continued to experience increased demand for our services in 2008, resulting in a 14% increase in revenue over 2007. Under our contracts to provide telephone number portability services in the United States, we processed 372.3 million transactions, a growth of 17% over 2007. In addition, we continued to see increased demand from enterprises that require systems capable of handling high volumes of Internet traffic, which fueled demand for domain name systems service offerings, especially our Ultra services.

 

Our results in 2008 were significantly impacted by two goodwill impairment charges totaling $93.6 million and a long-lived assets impairment charge of $18.2 million, all of which related to our NGM business segment. In the fourth quarter of 2008, in response to lower than anticipated adoption rates of our NGM services and the resulting underperformance of our NGM business, as well as the manner in which the mobile data market had evolved and was evolving, we added new leadership and changed the strategic direction of our NGM business. Associated with this decision, we began to realign the NGM organization in December of 2008, and we began development of a new technology platform that would serve as the common infrastructure for each of our NGM customers. Though we believe the implementation of this new strategy for the NGM business will position it well for long-term success, this repositioning of our NGM business will result in a delay in market penetration and delayed growth in end-user adoption rates.

 

In 2008, our cash flow from operating activities was $167.6 million, which demonstrates our ability to generate strong cash flows notwithstanding deteriorating market conditions, particularly in the second half of the year. The strength of our business and financial condition enabled us to use $124.9 million in cash to repurchase shares of our common stock during the year and still end the year with $161.7 million in cash, cash equivalents and short-term investments.

 

 

We continued to experience increased demand for our services in 2008, resulting in a 14% increase in revenue over 2007. Under our contracts to provide telephone number portability services in the United States, we processed 372.3 million transactions, a growth of 17% over 2007. In addition, we continued to see increased demand from enterprises that require systems capable of handling high volumes of Internet traffic, which fueled demand for domain name systems service offerings, especially our Ultra services.

 

Our results in 2008 were significantly impacted by two goodwill impairment charges totaling $93.6 million and a long-lived assets impairment charge of $18.2 million, all of which related to our NGM business segment. In the fourth quarter of 2008, in response to lower than anticipated adoption rates of our NGM services and the resulting underperformance of our NGM business, as well as the manner in which the mobile data market had evolved and was evolving, we added new leadership and changed the strategic direction of our NGM business. Associated with this decision, we began to realign the NGM organization in December of 2008, and we began development of a new technology platform that would serve as the common infrastructure for each of our NGM customers. Though we believe the implementation of this new strategy for the NGM business will position it well for long-term success, this repositioning of our NGM business will result in a delay in market penetration and delayed growth in end-user adoption rates.

 

In 2008, our cash flow from operating activities was $167.6 million, which demonstrates our ability to generate strong cash flows notwithstanding deteriorating market conditions, particularly in the second half of the year. The strength of our business and financial condition enabled us to use $124.9 million in cash to repurchase shares of our common stock during the year and still end the year with $161.7 million in cash, cash equivalents and short-term investments.

 

 

We continued to experience increased demand for our services in
2008, resulting in a 14% increase in revenue over 2007. Under
our contracts to provide telephone number portability services
in the United States, we processed 372.3 million
transactions, a growth of 17% over 2007. In addition, we
continued to see increased demand from enterprises that require
systems capable of handling high volumes of Internet traffic,
which fueled demand for domain name systems service offerings,
especially our Ultra services.

 

Our results in 2008 were significantly impacted by two goodwill
impairment charges totaling $93.6 million and a long-lived
assets impairment charge of $18.2 million, all of which
related to our NGM business segment. In the fourth quarter of
2008, in response to lower than anticipated adoption rates of
our NGM services and the resulting underperformance of our NGM
business, as well as the manner in which the mobile data market
had evolved and was evolving, we added new leadership and
changed the strategic direction of our NGM business. Associated
with this decision, we began to realign the NGM organization in
December of 2008, and we began development of a new technology
platform that would serve as the common infrastructure for each
of our NGM customers. Though we believe the implementation of
this new strategy for the NGM business will position it well for
long-term success, this repositioning of our NGM business will
result in a delay in market penetration and delayed growth in
end-user adoption rates.

 

In 2008, our cash flow from operating activities was
$167.6 million, which demonstrates our ability to generate
strong cash flows notwithstanding deteriorating market
conditions, particularly in the second half of the year. The
strength of our business and financial condition enabled us to
use $124.9 million in cash to repurchase shares of our
common stock during the year and still end the year with
$161.7 million in cash, cash equivalents and short-term
investments.

 

 

We continued to experience increased demand for our services in
2008, resulting in a 14% increase in revenue over 2007. Under
our contracts to provide telephone number portability services
in the United States, we processed 372.3 million
transactions, a growth of 17% over 2007. In addition, we
continued to see increased demand from enterprises that require
systems capable of handling high volumes of Internet traffic,
which fueled demand for domain name systems service offerings,
especially our Ultra services.

 

Our results in 2008 were significantly impacted by two goodwill
impairment charges totaling $93.6 million and a long-lived
assets impairment charge of $18.2 million, all of which
related to our NGM business segment. In the fourth quarter of
2008, in response to lower than anticipated adoption rates of
our NGM services and the resulting underperformance of our NGM
business, as well as the manner in which the mobile data market
had evolved and was evolving, we added new leadership and
changed the strategic direction of our NGM business. Associated
with this decision, we began to realign the NGM organization in
December of 2008, and we began development of a new technology
platform that would serve as the common infrastructure for each
of our NGM customers. Though we believe the implementation of
this new strategy for the NGM business will position it well for
long-term success, this repositioning of our NGM business will
result in a delay in market penetration and delayed growth in
end-user adoption rates.

 

In 2008, our cash flow from operating activities was
$167.6 million, which demonstrates our ability to generate
strong cash flows notwithstanding deteriorating market
conditions, particularly in the second half of the year. The
strength of our business and financial condition enabled us to
use $124.9 million in cash to repurchase shares of our
common stock during the year and still end the year with
$161.7 million in cash, cash equivalents and short-term
investments.

 

 

We continued to experience increased demand for our services in
2008, resulting in a 14% increase in revenue over 2007. Under
our contracts to provide telephone number portability services
in the United States, we processed 372.3 million
transactions, a growth of 17% over 2007. In addition, we
continued to see increased demand from enterprises that require
systems capable of handling high volumes of Internet traffic,
which fueled demand for domain name systems service offerings,
especially our Ultra services.

 

Our results in 2008 were significantly impacted by two goodwill
impairment charges totaling $93.6 million and a long-lived
assets impairment charge of $18.2 million, all of which
related to our NGM business segment. In the fourth quarter of
2008, in response to lower than anticipated adoption rates of
our NGM services and the resulting underperformance of our NGM
business, as well as the manner in which the mobile data market
had evolved and was evolving, we added new leadership and
changed the strategic direction of our NGM business. Associated
with this decision, we began to realign the NGM organization in
December of 2008, and we began development of a new technology
platform that would serve as the common infrastructure for each
of our NGM customers. Though we believe the implementation of
this new strategy for the NGM business will position it well for
long-term success, this repositioning of our NGM business will
result in a delay in market penetration and delayed growth in
end-user adoption rates.

 

In 2008, our cash flow from operating activities was
$167.6 million, which demonstrates our ability to generate
strong cash flows notwithstanding deteriorating market
conditions, particularly in the second half of the year. The
strength of our business and financial condition enabled us to
use $124.9 million in cash to repurchase shares of our
common stock during the year and still end the year with
$161.7 million in cash, cash equivalents and short-term
investments.

 

 

We continued to experience increased demand for our services in
2008, resulting in a 14% increase in revenue over 2007. Under
our contracts to provide telephone number portability services
in the United States, we processed 372.3 million
transactions, a growth of 17% over 2007. In addition, we
continued to see increased demand from enterprises that require
systems capable of handling high volumes of Internet traffic,
which fueled demand for domain name systems service offerings,
especially our Ultra services.

 

Our results in 2008 were significantly impacted by two goodwill
impairment charges totaling $93.6 million and a long-lived
assets impairment charge of $18.2 million, all of which
related to our NGM business segment. In the fourth quarter of
2008, in response to lower than anticipated adoption rates of
our NGM services and the resulting underperformance of our NGM
business, as well as the manner in which the mobile data market
had evolved and was evolving, we added new leadership and
changed the strategic direction of our NGM business. Associated
with this decision, we began to realign the NGM organization in
December of 2008, and we began development of a new technology
platform that would serve as the common infrastructure for each
of our NGM customers. Though we believe the implementation of
this new strategy for the NGM business will position it well for
long-term success, this repositioning of our NGM business will
result in a delay in market penetration and delayed growth in
end-user adoption rates.

 

In 2008, our cash flow from operating activities was
$167.6 million, which demonstrates our ability to generate
strong cash flows notwithstanding deteriorating market
conditions, particularly in the second half of the year. The
strength of our business and financial condition enabled us to
use $124.9 million in cash to repurchase shares of our
common stock during the year and still end the year with
$161.7 million in cash, cash equivalents and short-term
investments.

 

 

Our executive compensation programs are designed to create value for our stockholders by supporting the achievement of our business and financial objectives. To this end, we have formulated our programs for executives (including our named executive officers, as defined in the Summary Compensation Table below) to reward superior financial and operating performance, to align executives’ interests with those of our stockholders, and to encourage talented individuals to join and remain with the Company and contribute to our growth and success.

 

Our executive compensation programs are intended to be both competitive and fair. In determining the types and amount of compensation for each executive, we focus on the executive’s performance and potential, level of responsibility, and current compensation and stock ownership levels, as well as our retention needs and competitive practice. The material elements of our executive compensation programs consist of base salary, annual cash incentive compensation, discretionary bonus and equity awards.

 

 

We continued to experience increased demand for our services in 2007, resulting in a 29% increase in revenue over 2006. Under our contracts to provide telephone number portability services in the United States, we processed 318.5 million transactions, a growth of 36% over 2006. We believe that this growth in transaction volume demonstrates strong demand for our services from numerous sources, including, most significantly, customers who have been optimizing their network and who have been upgrading to next generation technologies, such as Internet Protocol, or IP, systems. Revenue growth from increased transaction volume was partially offset by the reduction in per transaction pricing that went into effect as part of the amendment and extension of these contracts in September 2006. In addition, with increased reliance by many enterprises on the Internet as a key enabling technology for their businesses, we have experienced significant growth in demand for NeuStar Ultra Services.

 

To support our corporate goals of continued growth and to meet the demands of our customers, we initiated several programs in 2007 to maintain our position in the industry as a provider of essential services. In particular, we have fully integrated our Ultra Services operations team and technology, leading to streamlined capabilities and enhanced scalability of our Ultra Services operations. Further, we made substantial investments in the business we acquired from Followap Inc. in November 2006, which we believe will position this business to take advantage of the maturing market for mobile instant messaging services. In particular, we have assembled a team with the skills to enable this business to realize the potential of this developing technology and drive its adoption in the market.

 

 

Our executive compensation programs are designed to create value for our stockholders by supporting the achievement of our business and financial objectives. To this end, we have formulated our programs for executives (including our named executive officers, as defined in the Summary Compensation Table below) to reward superior financial and operating performance, to align executives’ interests with those of our stockholders, and to encourage talented individuals to join — and remain with — the Company and contribute to our growth and success.

 

Our executive compensation programs are intended to be both competitive and fair. In determining the types and amount of compensation for each executive, we focus on the executive’s performance and potential, level of responsibility, and current compensation and stock ownership levels, as well as our retention needs and competitive practice. The material elements of our executive compensation programs consist of base salary, annual cash incentive compensation, discretionary bonus and equity awards.

 

 

We continued to experience increased demand for our clearinghouse services in 2006, and we made significant steps to innovate and expand the range and value of the services that we provide to meet the evolving needs of the communications industry. Under our contracts to provide telephone number portability services in the United States, we processed 234.4 million transactions, a growth of 37% over 2005. We believe that this growth in transaction volume demonstrates strong demand for our services from numerous sources, including, most significantly, customers who have been upgrading to next generation technologies, such as Internet Protocol, or IP, systems, and the entry of new service providers. In 2006, we also saw significant demand for our services from content providers to market their products and services using U.S. Common Short Codes.

 

The growth in demand for our clearinghouse services led to the amendment and extension of our seven contracts with the North American Portability Management LLC under which we provide telephone number portability and other clearinghouse services in the United States. Under these amendments, which we announced in September 2006, these contracts now run until June 2015. Pricing for 2006, including volume-based credits, remained unchanged. For 2007, pricing is $0.91 per transaction regardless of transaction volume. Pricing from 2008 through the expiration of the contracts contains volume-based pricing that ranges from $0.95 per transaction to $0.75 per transaction, with the precise effective rate being determined based on transaction volumes within the applicable calendar year. In July 2006, working with the CTIA, we also expanded the U.S. Common Short Codes directory to include six-digit short codes, enabling an unprecedented number of new codes for providers to establish relationships with mobile customers. In December 2006, we renewed our agreement to operate the .biz registry.

 

During 2006, we executed on our long-standing strategy to expand the scope of our services and customers through acquisitions. Specifically, in April 2006, we acquired UltraDNS Corporation for $61.8 million in cash. As a result of this acquisition, our Ultra services now play a key role in directing and managing Internet traffic, enabling thousands of our customers to intelligently and securely control and distribute that traffic, and ensuring security, scalability and reliability of websites and email. In November 2006, we announced the acquisition of Followap Inc. for $139.0 million in cash, adding an end-to-end solution for the routing and delivery of mobile instant messaging, or mobile IM. These two acquisitions position us to provide solutions to meet the challenges that our customers face as new and different communications services arise.

 

 

During the third quarter of 2006, we continued to experience increased demand for our clearinghouse services. Total revenue for the third quarter of 2006 increased 39.9% as compared to the third quarter of 2005. Under our contracts to provide telephone number portability services in the United States, we processed 59.5 million transactions during the third quarter of 2006. We believe that this revenue growth and increased transaction volume during the third quarter of 2006 demonstrates strong demand for our services from numerous sources. We experienced significant growth in transactions in the third quarter from customers who have been upgrading to next generation technologies, such as Internet Protocol, or IP systems. This type of ongoing and pervasive change drives carriers to evaluate and restructure their network architectures.

 

During the third quarter of 2006, we announced the amendment and extension of our seven contracts with the North American Portability Management LLC (NAPM) under which we provide telephone number portability and other clearinghouse services in the United States. These contracts now run until June 2015 and have volume-based pricing that ranges from $0.95 per transaction to $0.75 per transaction, with the precise effective rate being determined based on transaction volumes within the applicable calendar year.

 

Also in the third quarter, we continued to build upon our expanded domain name systems (DNS) service offerings, especially our Ultra services which came to us through our acquisition of UltraDNS Corporation in April 2006. NeuStar Ultra Services play a key role in directing and managing Internet traffic, enabling thousands of our customers to intelligently and securely control and distribute that traffic, and ensuring security, scalability and reliability of websites and e-mail.

 

During the third quarter of 2006, we also saw significant demand for our services from content providers to market their products and services using U.S. Common Short Codes. In July 2006, working with the Cellular Telecommunications and Internet Association, or CTIA, we expanded the U.S. Common Short Codes directory to include six-digit short codes, enabling an unprecedented number of new codes for providers to establish relationships with mobile customers.